VANCOUVER, BC, July 14, 2020 /CNW/ - Pinnacle Renewable Energy Inc. ("Pinnacle" or the "Company") (TSX: PL) today announced its subsidiary, Alabama Pellets, LLC ("Alabama Pellets"), has signed an agreement with the State of Alabama that provides Alabama Pellets with incentives for job creation under Alabama's Job Act Incentives program. Pinnacle holds a 70% interest in Alabama Pellets with The Westervelt Company and Two Rivers Lumber Co., LLC each holding 20% and 10%, respectively.
The incentives relate specifically to a new industrial wood pellet production facility that Alabama Pellets is constructing in Demopolis, Alabama with a planned capital investment of US$95 million. The facility is expected to have an annual production volume of 360,000 metric tonnes per annum and will start initial industrial wood pellet production by mid-2021.
Chief Executive Officer of Pinnacle, Rob McCurdy commented: "Pinnacle and Alabama Pellets have been part of the Alabama business landscape since October 2018 and are proud to be part of the economic growth of this community. Our commitment as a good corporate citizen in the communities where we operate is to think local, hire local, and use local vendors and contractors. The Alabama Job Act Incentives supports our approach to doing business and we are pleased to be part of the state's 'Made in Alabama' program."
Governor of Alabama, Kay Ivey said, "We welcome the growth plans of Pinnacle and Alabama Pellets in our state. My administration has made it a priority to develop rural Alabama and this manufacturing facility under construction in Demopolis will have a significant economic impact on Marengo County and create meaningful new opportunities for many citizens there."
Incentives for Alabama Pellets include a tax credit for job creation totaling $848,000 over 10 years, as well as an investment credit totaling $9.5 million spread over 10 years. The incentives are offered to businesses that provide benefit to the State and its citizens through positive economic impacts in the community and tax revenue to the state. In order to receive the wage incentive, Alabama Pellets' facility in Demopolis will target employing a minimum of 45 employees that earn an average hourly wage of $20.
"We're committed to helping create jobs in our state's rural areas through strategic economic development, and the plans by Pinnacle and Alabama Pellets to locate a facility in Demopolis is a positive development for Marengo County," said Greg Canfield, Secretary of the Alabama Department of Commerce. "Alabama Pellets is making a major investment in this plant, which will drive economic growth in the region and spark the creation of direct and indirect jobs."
Pinnacle is a growing industrial wood pellet manufacturer and distributor and the third largest producer in the world. The Company produces sustainable fuel for renewable electricity generation in the form of industrial wood pellets. This fuel is used by large-scale thermal power generators as a greener alternative to produce reliable baseload renewable power. Pinnacle is a trusted supplier to its customers, who require reliable, high-quality fuel supply to maximize utilization of their facilities. Pinnacle takes pride in its industry leading safety practices. The Company operates eight industrial wood pellet production facilities in western Canada and one in Alabama, with two additional facilities under construction in Alberta and Alabama. The Company also owns a port terminal in Prince Rupert, B.C. Pinnacle has entered into long-term take-or-pay contracts with utilities in the U.K., Europe and Asia that represent an average of 99% of its production capacity through 2026.
This release may contain forward-looking information about Pinnacle's future financial outlook and anticipated events or results and may include information regarding its financial position, business strategy, growth strategies, budgets, operations, financial results, plans, objectives and other information that is not historical fact. Particularly, information regarding the Company's expectations of future results, performance, achievements, prospects or opportunities or the markets in which it operates is forward-looking information. In some cases, forward-looking information can be identified by the use of such words as believe, expect, intend, forecast, plan, target, budget, outlook, opportunity, risk, strategy or variations or comparable language, or statements that certain actions, events or results may, could, would, should, might, or will occur or not occur.
Readers are urged to consider risks, uncertainties and assumptions carefully in evaluating the forward-looking information in this release and are cautioned not to place undue reliance on such information. See "Forward-looking Information" and "Risk Factors" in the Company's most recent Annual Information Form and its Management's Discussion & Analysis for Q1 2020, which are available on www.pinnaclepellet.com and www.sedar.com for a discussion of the uncertainties, risks and assumptions associated with these statements. We caution that the list of risk factors and uncertainties is not exhaustive and other factors could also adversely affect our results. Material factors and assumptions used to develop the forward-looking information in this release include assumptions regarding the payment of all of the incentives. Unless otherwise indicated, the forward-looking information is based on the Company's expectations at the date of this release. Pinnacle has no obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Pinnacle Renewable Energy Inc.